Motorists in Dubai are to pay increased road toll and parking charges from June 1, as a new VAT rate comes into force.
Both Salik, which operates Dubai's road toll network, and Parkin, which oversees public parking in the emirate, announced on Friday they would apply a 5 per cent VAT rate from the start of next month.
The additional VAT revenue collected will be remitted to the Federal Tax Authority in line with the UAE's financial laws, Salik said.
"Salik reaffirmed its full commitment to complying with the regulatory and legislative frameworks adopted in the UAE, while continuing to deliver smart and seamless mobility services that enhance the user experience and support traffic efficiency across Dubai," the company said.
Parkin said the additional tax would apply to all of the various parking services it provides. "In co-ordination with relevant government authorities and applicable UAE tax regulations, from June 1, VAT at 5 per cent will be applied to all parking services provided by Parkin, which includes on-street and off-street parking, seasonal cards, permits and reservations," it said on social media.
The UAE introduced a 5 per cent VAT on the majority of goods and services in January 2018 as part of its plans to diversify the economy. June 1 serves as the primary start date of the financial year for many companies in the Emirates.
Road toll fees rise
Salik introduced peak and off-peak toll charges in January 2025. The move increased the cost of travelling during peak hours – in mornings and evenings – from the flat Dh4 fee to Dh6 ($1.08 to $1.63). The introduction of VAT means motorists in Dubai will face an increase in the peak charge to Dh6.30, with the off-peak charge to rise to Dh4.20.
A Salik tag – used to register motorists in the toll system and collect fees – currently costs Dh100 if bought in person and Dh120 when purchased online.
Parking charges increase
Parkin was set up in January 2024 by the Dubai government to manage the emirate’s paid parking spaces. In April 2025, it introduced variable parking tariffs that increased hourly fees in standard zones from Dh2 during non-peak hours, to Dh4 in peak hours – between 8am and 10am and between 4pm and 8pm – in standard spaces.
Higher charges are levied in premium spaces and fees vary significantly according the parking zone. Parking is chargeable in Dubai between 8am and 10pm, although in most areas it is free of charge on Sundays and public holidays.
The additional tax charges would mean a motorist paying Dh4 to park will be charged Dh4.20 from June 1.
What is Salik?
The Salik system was introduced in 2007 to ease traffic congestion, raise state revenue and encourage the use of public transport.
The first two gates were installed in Al Garhoud and Al Barsha, with Safa and Al Maktoum Bridge gates added a year later. In 2013, three more were introduced, at Airport Tunnel and Al Mamzar South and North. In 2018, the Jebel Ali gate was established.
Two additional Salik toll gates – at the Business Bay Crossing on Al Khail Road and at Al Safa South on Sheikh Zayed Road – were activated in November 2024.
Motorists are charged to pass through each gate, with the amount deducted automatically from tags fixed to vehicle windscreens. The tags can be bought online or at service stations and topped up online or through recharge cards.
Revenue drops as war takes toll
Salik recorded 13 million fewer journeys through the road toll network in the first three months of this year compared with the same period in 2025, with the Iran war causing a sharp drop in traffic.
The company reported 197 million trips by registered vehicles in the first quarter of the year, down 6.4 per cent from 210 million.
The company reported a profit of Dh369.3 million from January to the end of March, a slight drop from the Dh370.6 million in the first quarter of 2025. This came despite a 7.5 per cent increase in the number of active registered accounts in the Salik network over the 12 months, amid Dubai's sustained population growth.
